Huabao International (00336) has announced that on September 25, 2026, Nocton, World Concept, Broad Far, and Broad Far Hong Kong signed a share transfer agreement.
Based on strategic planning and business development needs, Nocton and World Concept (wholly-owned subsidiaries of the company, acting as buyers) have agreed to acquire, for a total consideration of RMB 90 million in cash, the 100% equity interest in the target company PT. Broad Far Indonesia held collectively by Broad Far and Broad Far Hong Kong (acting as sellers). Upon completion of this transaction, Nocton and World Concept will hold 99% and 1% of the target company's equity respectively. The target company will become a wholly-owned subsidiary of the company. Nocton and World Concept will pay the consideration in cash.
The target company was incorporated in Indonesia on October 27, 2021, and is primarily engaged in the production and sale of heat-not-burn (HNB) cigarette pod products in Indonesia, mainly providing OEM/ODM services for HNB cigarette pod products to customers.
Currently, the group's tobacco-related business is mainly focused on the upstream tobacco raw materials segment, covering categories such as reconstituted tobacco, flavors and fragrances, breakable capsules, and other tobacco raw materials; while the target company focuses on OEM/ODM production and processing of HNB cigarette pods, positioned in the midstream of the industry chain. This acquisition will effectively fill the group's capability gap in the midstream manufacturing segment, promote the formation of a vertically integrated structure of "upstream raw materials + midstream manufacturing," and facilitate synergies between the group and the target company in raw material supply, product research and development, production and manufacturing, and market expansion.
This acquisition will upgrade the existing commercial cooperation between the group and the target company into a wholly-controlled integrated management system, enabling the group to fully integrate the target company's mature production capacity, operational experience, and supply chain resources. This will not only help eliminate decision-making friction and coordination costs that may arise from differing stakeholders under the cooperation model, but also ensure complete alignment of the group's strategic direction, providing a more flexible and efficient internal decision-making foundation for subsequent resource allocation, production line synergies, and technological iteration, thereby maximizing the release of synergies between both parties.
The target company has obtained the relevant qualifications required for engaging in the production and sale of HNB cigarette pods in its operating location, and has established a comprehensive process flow, large-scale production lines, and a stable raw material and equipment supply chain system. Its products have also entered multiple national markets. The directors believe that the acquisition can integrate the target company's production-end resources and market access advantages on the basis of the group's existing tobacco raw materials business, effectively expanding the coverage of the group's tobacco-related products and services, further strengthening its one-stop service capabilities for customers outside China, and enhancing its international competitive position.